Chapter 11

Reorganization for Businesses and Individuals

Chapter 11 reorganization can be used by struggling businesses or by individuals who have too much debt to qualify for Chapter 13 bankruptcy. Chapter 11 gives a business or a person breathing room, making it possible to pay off debts partially or over time while keeping important property and assets.

Though it can be an expensive process, Chapter 11 is an effective way for a debtor to reorganize company or personal finances while discharging or settling debts. For a business, this reorganization can drastically lower expenses and allow it to keep operating and succeed in the long run.

Debt Relief Through Chapter 11

As a bankruptcy attorney with more than 20 years of experience, I have helped many California businesses and consumers obtain debt relief through Chapter 11 filings. With court approval, I, Christopher P. Walker, assist my Chapter 11 clients in formulating reorganization plans that allow them to:

  • Stop collection efforts
  • Continue business operations
  • Get asset protection
  • Discharge unsecured debt in a way similar to Chapter 7 or Chapter 13
  • Pay back creditors a percentage of what they are owed. This involves one affordable monthly payment instead of several.
  • Refinance a mortgage on a commercial or income property

How does the process work?

A debtor commences a Chapter 11 by filing a petition in federal court. The debtor typically retains management and control of assets during the reorganization without the appointment of a case trustee as in a Chapter 7.

A written disclosure statement and plan of reorganization are filed with the court. The disclosure statement must contain sufficient information about the debtor's assets, liabilities and financial affairs to enable a creditor to make an informed judgment about whether to vote to accept or reject the plan.

Once the disclosure statement is approved by the court, a copy is sent to creditors with the plan and a ballot. Creditors whose claims are "impaired," meaning their rights are modified by the plan or they will be paid less than the full claim under the plan, may vote to accept or reject the plan. A confirmation hearing is held. If there are sufficient votes in favor of the plan, it is confirmed as a consensual plan. If not, the court determines whether to "cram down" the plan over creditor objections.

Contact a Yorba Linda Business Bankruptcy Attorney

Contact me, Christopher P. Walker, for a free consultation with an Anaheim Chapter 11 lawyer. I can review your debts, explain your options and help you determine whether bankruptcy is right for you.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.